No cut in petro product prices

Though there has been a softening in crude oil prices, there is no case for reduction in the price of petrol and diesel, Petroleum Minister Murli Deora said today.

"Any decline in prices now would be premature and short-lived. If you look at the futures market, the price for the Indian basket in January is $64 and $70 in June," petroleum secretary M S Srinivasan explained.

While oil marketing companies are earning Rs 4.50 on sale per litre of petrol, the margins on diesel are still negative with under-recovery at Rs 1.50 per litre. There are under-recoveries on kerosene and LPG too.

"Petrol accounts for just 8% of the total volume of petroleum products sold. We have to look at the consolidated market," Srinivasan said.